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Bitcoin Volumes In China Continue To Drop, Amid Coronavirus Fears

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  • China happens to be one of the most attractive investment fields not just for stocks but for cryptocurrencies as well.
  • In China, bitcoin trading through the LocalBitcoins platform to fall to a two year low as indicated by coindance data.
  • Baidu Search index also witness a sharp decline in search of Bitcoin.

China happens to be one of the most attractive investment fields out there today with the largest population and high inclination towards technology and development. Even though many such factors such as high GDP and increasing per capita income support growth of industries, in a recent report by Coindance, data has shown bitcoin trading through the LocalBitcoins platform to fall to a two year low.

Bitcoin Trading Volume Drops in China

This report was released yesterday and mentioned how it had shown a downward spiral since the second half of 2019. Considering the week ending 25th January, the bitcoin transaction value amounted to just 648,000 dollars, which would account for roughly 10% of the maximum weekly transaction value of 4.5 million.

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This would be an alarming concern for Bitcoin, which aims to spread and maintain its reach in the developing and underpenetrated markets such as Asia. Interestingly, peak trading values at LocalBitcoins were observed in the same month of January during the previous year, which further intrigues a curiosity to find what is causing such a downfall.

Bitcoin Search Index Falls Sharply

There has also been seen a considerable decrease in the search impressions after analyzing China’s most popular search engine, Baidu. Several patterns of Bitcoin prices and the Baidu Search Index were observed, which showed direct proportionality in some areas.

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The searches fell to a new monthly low of 12,913, which was a pattern observed just after three months of Chinese president Xi Jinping mentioning the need for developing blockchain technology in China. Further authorities even stated it would comprise developing blockchain industry only and won’t include cryptocurrencies, which further would damage the crypto market in China.

Political heats do pose a growing challenge to bitcoin’s growth in China and would further put forth a question to whether or not it can create a more persistent market for the traders and buyers as a whole.

Another rising concern becomes the increasing cases of coronavirus, which may too take a toll on the bitcoin trading as many stocks are facing a massive hit due to the same. However, experts argue on whether the epidemic would surge in favor of the cryptocurrency or further decrease its market holding.

All we know for now is the Chinese market happens to one of high volatility for the Crypto Giant.

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